Definition :

Organizational Transformation is a term

referring collectively to such activities as
reengineering, redesigning and redefining
business systems.
The dominant enabling technology in
transforming organization is information and
technology.
Three Types of Transformation
1. Improving Operation: To achieve a quantum improvement in
the firm's efficiency, often by reducing costs, improving quality
and services and reducing development time.

2. Strategic Transformation: The process of changing strategy
seeks to regain a sustainable competitive advantage by
redefining business objectives, creating new competences and
harnessing these capabilities to meet MARKET opportunities.

3. Corporate Self-Renewal: Self-Renewal creates the ability for a
firm to anticipate and cope with change so that strategic and
operational gap does not develop.
Phases of Transformation
Transformation Strategies :

Transformation through Re-engineering
Re-engineering is revolutionary, challenging the
operation and even existence of fundamental processes.
It not only improves the old way of doing business, it seeks
to create a new and better way.
Business process re-engineering aimed to
help organizations fundamentally rethink how they do
their work in order to dramatically improve customer
service, cut operational costs, and become world-
class competitors.
BPR seeks to help companies radically restructure their
organizations by focusing on the ground-up design of
their business processes.

Transformation through McKinsey's Plan
A ten point blue print for an organization
Organize primarily around process, not task.
Flatten the hierarchy by minimizing subdivision of processes.
Give senior leaders charge of processes & process performance.
Link performance objectives & evaluation of all activities to
customer satisfaction.
More teams, not individuals, the focus of organization performance
and design.
Combine managerial and non-managerial activities as often as
possible.
Emphasis that each employee should develop several
competencies.
Inform & Train people on a just-in-time, need to perform basis.
Maximize supplier and customer contact with every one in the
organization.
REWARD individual skill development and team performance
instead of individual performance alone
Transformation through
Competitive Benchmarking
Benchmarking is the continuous process of
measuring products, services and practices against
the toughest competitions or those companies
recognize as industry leaders.
It allows organizations to develop plans on how to
make improvements or adapt specific best
practices, usually with the aim of increasing some
aspect of performance.
Interventions
1. Culture Change
Culture change is the most
common form of organization
transformation.
The number of culture change
interventions has grown
accordingly.
2. Self-Designing organizations
A growing number of researchers
and practitioners have called for
self-designing organizations that
have built-in capacity to transform
themselves to achieve high
performance in todays
competitive and changing
environment.
Demand of
transformational
change
Application
stage
Self-
Designing
Organization
3. Organization learning and knowledge
management
The 3
rd
organizational transformation
intervention is aimed at helping
organizations develop ad use
knowledge to change and improve
themselves continually.
It includes 2 interrelated change
processes:-

Interventions cont
Processes
Knowledge
management
Organization
learning


-Thank You